Portugal is taking significant steps to address its ongoing brain drain crisis by proposing a decade-long series of tax breaks aimed at young professionals. The initiative, part of the 2025 budget, seeks to provide substantial financial relief to those entering the workforce, encouraging them to remain in the country and contribute to its economy.
Under the new proposal, young people aged 18 to 35 will benefit from a progressive tax scheme with 100^ exemption for the first year, on earnings of up to €28,000. In years eight to ten, young tax-payers will see a 25% exemption.
Portugal has been grappling with a significant brain drain, with around 850,000 young people, or 30% of those aged 15 to 39, having left the country for better opportunities abroad. The government aims to reverse this trend by making it easier for young people to find jobs and build their lives in Portugal.
Despite an overall unemployment rate of 6.1%, youth unemployment remains alarmingly high at 22%. Prime Minister Luís Montenegro emphasized the need for young people to find opportunities at home, stating, “It’s worth believing in Portugal.”
